Yesterday`s price action carried significant weight for the ongoing trend - Tradebulls Securities Pvt Ltd

Nifty
Yesterday’s price action carried significant weight for the ongoing trend. Despite consistent intraday weakness, the index managed to protect the prior day’s Bullish Hammer swing low and closed above the crucial 24,500 support zone. However, the close below the 20-DEMA (24,630) signals lack of strength and suggests caution. A sustained breakdown below 24500, especially if accompanied by an RSI close below 50, could confirm a channel breakdown, opening downside potential towards 24185 (50-DEMA) and eventually 23700 (200-DEMA). Options open interest data supports a rangebound setup, with heavy positioning at 24500 and 25000. Interestingly, the Put-Call Ratio indicates oversold conditions, which could trigger a technical bounce early in the week. A decisive close above 24830 would revive bullish sentiment and pave the way for a retest of 25000, while 25180 remains a key resistance and momentum marker. Until then, contrarian long trades near 24600 may be considered, with a strict stop-loss just below 24450
Please refer disclaimer at https://www.tradebulls.in/disclaimer
SEBI Registration number is INZ000171838










Tag News

Sensex, Nifty end in green ahead of RBI MPC decision



More News

Quote on Weekly Market Wrap by Amol Athawale, VP-Technical Research, Kotak Securities


